WallStSmart

NewJersey Resources Corporation (NJR)vsEssential Utilities Inc (WTRG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Essential Utilities Inc generates 15% more annual revenue ($2.47B vs $2.15B). WTRG leads profitability with a 24.9% profit margin vs 15.2%. NJR appears more attractively valued with a PEG of 2.23. NJR earns a higher WallStSmart Score of 61/100 (C+).

NJR

Buy

61

out of 100

Grade: C+

Growth: 4.0Profit: 7.5Value: 4.7Quality: 4.3
Piotroski: 4/9Altman Z: 1.02

WTRG

Buy

60

out of 100

Grade: C+

Growth: 4.7Profit: 7.5Value: 6.7Quality: 3.3
Piotroski: 2/9Altman Z: 0.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NJRSignificantly Overvalued (-34.7%)

Margin of Safety

-34.7%

Fair Value

$39.24

Current Price

$55.40

$16.16 premium

UndervaluedFair: $39.24Overvalued
WTRGUndervalued (+47.6%)

Margin of Safety

+47.6%

Fair Value

$71.49

Current Price

$39.49

$32.00 discount

UndervaluedFair: $71.49Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NJR4 strengths · Avg: 8.0/10
P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.6%8/10

Strong operational efficiency at 29.6%

Revenue GrowthGrowth
23.9%8/10

Revenue surging 23.9% year-over-year

WTRG5 strengths · Avg: 8.6/10
Operating MarginProfitability
32.4%10/10

Strong operational efficiency at 32.4%

Profit MarginProfitability
24.9%9/10

Keeps 25 of every $100 in revenue as profit

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

Areas to Watch

NJR4 concerns · Avg: 2.5/10
PEG RatioValuation
2.234/10

Expensive relative to growth rate

EPS GrowthGrowth
-7.6%2/10

Earnings declined 7.6%

Free Cash FlowQuality
$-139.67M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.022/10

Distress zone — elevated risk

WTRG4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.772/10

Expensive relative to growth rate

EPS GrowthGrowth
-30.0%2/10

Earnings declined 30.0%

Free Cash FlowQuality
$-240.78M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : NJR

The strongest argument for NJR centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 15.2% and operating margin at 29.6%. Revenue growth of 23.9% demonstrates continued momentum.

Bull Case : WTRG

The strongest argument for WTRG centers on Operating Margin, Profit Margin, P/E Ratio. Profitability is solid with margins at 24.9% and operating margin at 32.4%. Revenue growth of 15.7% demonstrates continued momentum.

Bear Case : NJR

The primary concerns for NJR are PEG Ratio, EPS Growth, Free Cash Flow.

Bear Case : WTRG

The primary concerns for WTRG are Piotroski F-Score, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

WTRG carries more volatility with a beta of 0.77 — expect wider price swings.

NJR is growing revenue faster at 23.9% — sustainability is the question.

NJR generates stronger free cash flow (-140M), providing more financial flexibility.

Monitor UTILITIES - REGULATED GAS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

NJR scores higher overall (61/100 vs 60/100), backed by strong 15.2% margins and 23.9% revenue growth. WTRG offers better value entry with a 47.6% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

NewJersey Resources Corporation

UTILITIES · UTILITIES - REGULATED GAS · USA

New Jersey Resources Corporation, an energy services portfolio company, provides regulated gas distribution and retail and wholesale energy services. The company is headquartered in Wall, New Jersey.

Essential Utilities Inc

UTILITIES · UTILITIES - REGULATED WATER · USA

Essential Utilities, Inc. operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company is headquartered in Bryn Mawr, Pennsylvania.

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